Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 July 2020
U.S. Attorney Erin Nealy Cox Names Prerak Shah First AssistantRead the Press Release
United States Attorney Erin Nealy Cox has appointed Prerak Shah as First Assistant United States Attorney, the office’s second in command, she announced today.
“Prerak Shah is a great addition to the Northern District of Texas and I am confident he will do a wonderful job working with our team, our law enforcement partners, and our judges,” said U.S. Attorney Erin Nealy Cox. “We are glad that he has returned to Dallas and know his extraordinary depth of experience – inside both federal and state government as well as the private sector – will no doubt inform our strategic approach to Justice Department priorities moving forward.”
Mr. Shah’s first day with the U.S. Attorney’s Office for the Northern District of Texas was Monday, July 13.
Prior to joining the office, Mr. Shah served in various senior leadership positions at the U.S. Department of Justice, including as a Deputy Associate Attorney General in the office overseeing the civil and criminal work of the Antitrust, Civil, Civil Rights, Environment & Natural Resources, and Tax Divisions. He also previously served as the Deputy Assistant Attorney General directly supervising the approximately 75 trial lawyers of the Department's Natural Resources Section in investigations and trials across the country.
Before joining the Justice Department, Mr. Shah served as an attorney in the Dallas office of Gibson, Dunn & Crutcher LLP, as Senior Counsel to the Attorney General of Texas, as an Assistant Solicitor General of Texas, and Chief of Staff and Chief Counsel to U.S. Senator Ted Cruz of Texas. He graduated with honors from the University of Chicago Law School and clerked for the Hon. Jerry E. Smith of the U.S. Court of Appeals for the Fifth Circuit.
"Pre is an extraordinarily talented attorney and was an invaluable member of the Associate's Office. The Department is grateful for his past work and looks forward to everything he will accomplish in the Northern District of Texas,” said Principal Deputy Associate Attorney General Claire Murray.
“Pre was a tremendous Deputy Assistant Attorney General, ably overseeing some of the most controversial litigation in the Environment Division at Main Justice. My loss is definitely USA Nealy Cox's and Dallas's gain,” echoed Assistant Attorney General for the Environment and Natural Resources Division Jeff Clark.
Mr. Shah took the reins from Northern District of Texas Criminal Chief Steve Fahey, who served as Acting FAUSA from January to July.
“Steve’s extraordinary contributions during this challenging time have made it possible to continue to advance a number of mission-critical objectives while facing the unprecedented challenges presented by the pandemic,” U.S. Attorney Nealy Cox wrote in an office-wide email. “I have felt so lucky to be able to call upon his wise counsel.”
Mr. Fahey will return to his role as Criminal Chief, where he’ll focus on a number of important strategic objectives facing the Northern District of Texas’ Criminal Division.
Prior to this, U.S. Attorney Nealy Cox's first FAUSA was Tanya Pierce, who had worked as a Northern District of Texas AUSA for 18 years and then served the Drug Enforcement Administration as Chief of Staff and Division Counsel for 11 years. Ms. Pierce retired at the end of 2019 after 30 years in federal service.
Established in 1879, the United States Attorney’s Office for the Northern District of Texas has prospective responsibility for 96,000 square miles of Texas, a population of approximately eight million. The office is charged with vigorously enforcing the laws and defending the interests of the United States, and with promoting a peaceful and lawful community.
Two Chinese Hackers Working with the Ministry of State Security Charged with Global Computer Intrusion Campaign Targeting Intellectual Property and Confidential Business Information, Including COVID-19 ResearchRead the Press Release
A federal grand jury in Spokane, Washington, returned an indictment earlier this month charging two hackers, both nationals and residents of the People’s Republic of China (China), with hacking into the computer systems of hundreds of victim companies, governments, non-governmental organizations, and individual dissidents, clergy, and democratic and human rights activists in the United States and abroad, including Hong Kong and China. The defendants in some instances acted for their own personal financial gain, and in others for the benefit of the MSS or other Chinese government agencies. The hackers stole terabytes of data which comprised a sophisticated and prolific threat to U.S. networks.
The 11-count indictment alleges LI Xiaoyu (李啸宇), 34, and DONG Jiazhi (董家志), 33, who were trained in computer applications technologies at the same Chinese university, conducted a hacking campaign lasting more than ten years to the present, targeting companies in countries with high technology industries, including the United States, Australia, Belgium, Germany, Japan, Lithuania, the Netherlands, Spain, South Korea, Sweden, and the United Kingdom. Targeted industries included, among others, high tech manufacturing; medical device, civil, and industrial engineering; business, educational, and gaming software; solar energy; pharmaceuticals; defense. In at least one instance, the hackers sought to extort cryptocurrency from a victim entity, by threatening to release the victim’s stolen source code on the Internet. More recently, the defendants probed for vulnerabilities in computer networks of companies developing COVID-19 vaccines, testing technology, and treatments.
The charges were announced by Assistant Attorney General for National Security John C. Demers; FBI Deputy Director David Bowdich; U.S. Attorney for the Eastern District of Washington William D. Hyslop; and Special Agent in Charge of the FBI’s Seattle Field Division Raymond Duda.
“China has now taken its place, alongside Russia, Iran and North Korea, in that shameful club of nations that provide a safe haven for cyber criminals in exchange for those criminals being ‘on call’ to work for the benefit of the state, here to feed the Chinese Communist party’s insatiable hunger for American and other non-Chinese companies’ hard-earned intellectual property, including COVID-19 research,” said Assistant Attorney General for National Security John C. Demers.
“Today’s indictment demonstrates the serious consequences the Chinese MSS and its proxies will face if they continue to deploy malicious cyber tactics to either steal what they cannot create or silence what they do not want to hear,” said FBI Deputy Director David Bowdich. “Cybercrimes directed by the Chinese government’s intelligence services not only threaten the United States but also every other country that supports fair play, international norms, and the rule of law, and it also seriously undermines China's desire to become a respected leader in world affairs. The FBI and our international partners will not stand idly by to this threat, and we are committed to holding the Chinese government accountable.”
“The cybercrime hacking occurring here was first discovered on computers of the Department of Energy’s Hanford Site in Eastern Washington. As the grand jury charged, the computer systems of many businesses, individuals and agencies throughout the United States and worldwide have been hacked and compromised with a huge array of sensitive and valuable trade secrets, technologies, data, and personal information being stolen. The hackers operated from China both for their own gain and with the assistance and for the benefit of the Chinese government’s Ministry of State Security. This prosecution is occurring as a result of the combined unwavering efforts of the National Security Division of the Department of Justice, the United States Attorney’s Office for the Eastern District of Washington, and the Federal Bureau of Investigation. We seek justice for these victims and others affected and we intend to prosecute these defendants for their alleged crimes,” said U.S. Attorney William D. Hyslop for the District Eastern District of Washington.
"The complicated nature of cyber investigations is only exacerbated when the criminal is backed by the resources of a foreign government. The nature and value of the material stolen by these hackers cannot just be measured in dollars and was indicative of being state driven. This case demonstrates the FBI's dedication to pursuing these criminals no matter who is sanctioning their activities,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Division.
According to the indictment, to gain initial access to victim networks, the defendants primarily exploited publicly known software vulnerabilities in popular web server software, web application development suites, and software collaboration programs. In some cases, those vulnerabilities were newly announced, meaning that many users would not have installed patches to correct the vulnerability. The defendants also targeted insecure default configurations in common applications. The defendants used their initial unauthorized access to place malicious web shell programs (e.g., the “China Chopper” web shell) and credential-stealing software on victim networks, which allowed them to remotely execute commands on victim computers.
To conceal the theft of information from victim networks and otherwise evade detection, the defendants typically packaged victim data in encrypted Roshal Archive Compressed files (RAR files), changed RAR file and victim documents’ names and extensions (e.g., from “.rar” to “.jpg”) and system timestamps, and concealed programs and documents at innocuous-seeming locations on victim networks and in victim networks’ “recycle bins.” The defendants frequently returned to re-victimize companies, government entities, and organizations from which they had previously stolen data, in some cases years after the initial successful data theft. In several instances, however, the defendants were unsuccessful in this regard, due to the efforts of the FBI and network defenders.
The indictment charges the defendants with conspiring to steal trade secrets from at least eight known victims, which consisted of technology designs, manufacturing processes, test mechanisms and results, source code, and pharmaceutical chemical structures. Such information would give competitors with a market edge by providing insight into proprietary business plans and savings on research and development costs in creating competing products.
The defendants are each charged with one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit theft of trade secrets, which carries a maximum sentence of ten years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of unauthorized access of a computer, which carries a maximum sentence of five years in prison; and seven counts of aggravated identity theft, which each carries a mandatory sentence of two non-consecutive years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
The investigation was conducted jointly by the U.S. Attorney’s Office for the Eastern District of Washington, the National Security Division of the Department of Justice, and the FBI’s Spokane Resident Agency and San Antonio and Norfolk Field Offices. The FBI’s Cyber Division assisted in the investigation and, along with FBI’s Cyber Assistant Legal Attachés and Legal Attachés in countries around the world, provided essential support. Numerous victims cooperated and provided valuable assistance in the investigation.
Assistant U.S. Attorney James Goeke of the Eastern District of Washington and Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
The details contained in the charging document are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Chinese Hackers Working with the Ministry of State Security Charged with Global Computer Intrusion Campaign Targeting Intellectual Property and Confidential Business Information, Including Covid-19 ResearchRead the Press Release
WASHINGTON – A federal grand jury in Spokane, Washington, returned an indictment earlier this month charging two hackers, both nationals and residents of the People’s Republic of China (China), with hacking into the computer systems of hundreds of victim companies, governments, non-governmental organizations, and individual dissidents, clergy, and democratic and human rights activists in the United States and abroad, including Hong Kong and China. The defendants in some instances acted for their own personal financial gain, and in others for the benefit of the MSS or other Chinese government agencies. The hackers stole terabytes of data which comprised a sophisticated and prolific threat to U.S. networks.
The 11-count indictment alleges LI Xiaoyu (李啸宇), 34, and DONG Jiazhi (董家志), 33, who were trained in computer applications technologies at the same Chinese university, conducted a hacking campaign lasting more than ten years to the present, targeting companies in countries with high technology industries, including the United States, Australia, Belgium, Germany, Japan, Lithuania, the Netherlands, Spain, South Korea, Sweden, and the United Kingdom. Targeted industries included, among others, high tech manufacturing; medical device, civil, and industrial engineering; business, educational, and gaming software; solar energy; pharmaceuticals; defense. In at least one instance, the hackers sought to extort cryptocurrency from a victim entity, by threatening to release the victim’s stolen source code on the Internet. More recently, the defendants probed for vulnerabilities in computer networks of companies developing COVID-19 vaccines, testing technology, and treatments.
The charges were announced by Assistant Attorney General for National Security John C. Demers; FBI Deputy Director David Bowdich; U.S. Attorney for the Eastern District of Washington William D. Hyslop; and Special Agent in Charge of the FBI’s Seattle Field Division Raymond Duda.
“China has now taken its place, alongside Russia, Iran and North Korea, in that shameful club of nations that provide a safe haven for cyber criminals in exchange for those criminals being ‘on call’ to work for the benefit of the state, here to feed the Chinese Communist party’s insatiable hunger for American and other non-Chinese companies’ hard-earned intellectual property,” said Assistant Attorney General for National Security John C. Demers.
“Today’s indictment demonstrates the serious consequences the Chinese Communist Party will face if it continues to deploy malicious cyber tactics to either steal what they cannot create or silence what they do not want to hear,” said FBI Deputy Director David Bowdich. “Cybercrimes directed by the Chinese government’s intelligence services not only threaten the United States but also every other country that supports fair play, international norms, and the rule of law, and it also seriously undermines China's desire to become a respected leader in world affairs. The FBI and our international partners will not stand idly by to this threat, and we are committed to holding the Chinese Communist Party accountable.”
“The cybercrime hacking occurring here was first discovered on computers of the Department of Energy’s Hanford Site in Eastern Washington. As the grand jury charged, the computer systems of many businesses, individuals and agencies throughout the United States and worldwide have been hacked and compromised with a huge array of sensitive and valuable trade secrets, technologies, data, and personal information being stolen. The hackers operated from China both for their own gain and with the assistance and for the benefit of the Chinese government’s Ministry of State Security. This prosecution is occurring as a result of the combined unwavering efforts of the National Security Division of the Department of Justice, the United States Attorney’s Office for the Eastern District of Washington, and the Federal Bureau of Investigation. We seek justice for these victims and others affected and we intend to prosecute these defendants for their alleged crimes,” said U.S. Attorney William D. Hyslop for the District Eastern District of Washington.
"The complicated nature of cyber investigations is only exacerbated when the criminal is backed by the resources of a foreign government. The nature and value of the material stolen by these hackers cannot just be measured in dollars and was indicative of being state driven. This case demonstrates the FBI's dedication to pursuing these criminals no matter who is sanctioning their activities,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Division.
According to the indictment, to gain initial access to victim networks, the defendants primarily exploited publicly known software vulnerabilities in popular web server software, web application development suites, and software collaboration programs. In some cases, those vulnerabilities were newly announced, meaning that many users would not have installed patches to correct the vulnerability. The defendants also targeted insecure default configurations in common applications. The defendants used their initial unauthorized access to place malicious web shell programs (e.g., the “China Chopper” web shell) and credential-stealing software on victim networks, which allowed them to remotely execute commands on victim computers.
To conceal the theft of information from victim networks and otherwise evade detection, the defendants typically packaged victim data in encrypted Roshal Archive Compressed files (RAR files), changed RAR file and victim documents’ names and extensions (e.g., from “.rar” to “.jpg”) and system timestamps, and concealed programs and documents at innocuous-seeming locations on victim networks and in victim networks’ “recycle bins.” The defendants frequently returned to re-victimize companies, government entities, and organizations from which they had previously stolen data, in some cases years after the initial successful data theft. In several instances, however, the defendants were unsuccessful in this regard, due to the efforts of the FBI and network defenders.
The indictment charges the defendants with conspiring to steal trade secrets from at least eight known victims, which consisted of technology designs, manufacturing processes, test mechanisms and results, source code, and pharmaceutical chemical structures. Such information would give competitors with a market edge by providing insight into proprietary business plans and savings on research and development costs in creating competing products.
The defendants are each charged with one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit theft of trade secrets, which carries a maximum sentence of ten years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of unauthorized access of a computer, which carries a maximum sentence of five years in prison; and seven counts of aggravated identity theft, which each carries a mandatory sentence of two non-consecutive years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
The investigation was conducted jointly by the U.S. Attorney’s Office for the Eastern District of Washington, the National Security Division of the Department of Justice, and the FBI’s Spokane Resident Agency and San Antonio Field Office. The FBI’s Cyber Division assisted in the investigation and, along with FBI’s Cyber Assistant Legal Attachés and Legal Attachés in countries around the world, provided essential support. Numerous victims cooperated and provided valuable assistance in the investigation.
Assistant U.S. Attorney James Goeke of the Eastern District of Washington and Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
The details contained in the charging document are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
The indictment can be view here Wanted By The FBITwo Charged with Fraud and Money Laundering for Scheme that Sold Stolen GoodsRead the Press Release
PITTSBURGH, PA – Two residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, conspiracy to commit wire fraud and money laundering, United States Attorney Scott W. Brady announced today.
The six-count Indictment named Anthony Costanzo, age 31, of Carnegie, Pennsylvania and Durrell Waters, age 37, of Pittsburgh, Pennsylvania.
According to the indictment, Costanzo and Waters were charged in eleven counts for conspiring with others to sell stolen goods through their business, called Trader Electronics, which sold used electronics and a wide variety of drug store type health and beauty aids and over the counter medications over the internet. Costanzo and Waters were charged with a criminal conspiracy, a wire fraud scheme for delivering stolen goods through the mail and receiving the proceeds through electronic funds transfers and money laundering with regard to their handling of the proceeds of the stolen goods.
The law provides for a maximum sentence of up to five years for the conspiracy count, up to 20 years on each wire fraud count and up to 10 years on each money laundering count. The statutes each also carry a fine provision of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the overall investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Charged with Introducing Contraband in Federal PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging LEE ANTHONY FISHER, 46, with one count of providing contraband in prison, and CURTIS BRENT CARICO, 28, with one count of attempting to obtain contraband in prison. FISHER made his initial appearance today before Magistrate Judge Zack Hawthorn in U.S. District Court in Beaumont, Texas. CARICO made his initial appearance today before Magistrate Judge Kate M. Menendez in U.S. District Court in Minneapolis, Minnesota.
According to the charges alleged in the indictment, on January 24, 2020, FISHER attempted to provide a Schedule I controlled substance to CARICO, who is a federal inmate at the Federal Correctional Institution in Sandstone, Minnesota.
If convicted, CARICO and FISHER both face a maximum potential penalty of 10 years in prison.
This case is the result of an investigation conducted by the Federal Bureau of Prisons and the United States Postal Inspection Service.
Assistant United States Attorney Chelsea A. Walcker is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
LEE ANTHONY FISHER, 46
Port Arthur, TX.
Charges:
- Providing contraband in prison, 1 count
CURTIS BRENT CARICO, 28
FCI Sandstone
Charges:
- Attempting to obtain contraband in prison, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Transportation Broker for MassHealth Agrees to Pay $300,000 to Resolve False Claims AllegationsRead the Press Release
BOSTON – The Montachusett Regional Transportation Authority (MART), a transportation broker for MassHealth, has agreed to pay $300,000 to resolve allegations that it violated the False Claims Act by submitting reimbursement claims for rides that never happened.
As a state Medicaid program, which the federal government jointly finances, MassHealth must provide its members with non-emergency transportation to and from medical appointments that MassHealth covers. MassHealth uses transportation brokers, including MART, to help its members find these rides. MART in turn contracts with third-party transportation companies to provide rides to MassHealth members. MART pays the transportation companies for the rides and submits reimbursement claims to MassHealth for the costs of the rides. In addition, MassHealth’s parent agency, the Executive Office of Health and Human Services (EOHHS), pays MART a management fee for its brokerage services.
The government alleges that, from Jan. 1, 2011 through Dec. 31, 2015, MART submitted reimbursement claims to MassHealth for thousands of rides that MART’s contracted transportation companies did not actually provide. MART’s contract with EOHHS required MART to have “procedures to verify that scheduled trips were performed as authorized and as billed, and that the Transportation Provider performed Consumer trips in a timely and satisfactory manner.” According to the allegations in the settlement agreement, however, MART’s verification procedures were not sufficient to prevent transportation companies from submitting false invoices to MART, resulting in MART then billing the invoiced amounts to MassHealth.
“MART obtained reimbursement from MassHealth for services that its vendors did not actually deliver,” said United States Attorney Andrew E. Lelling. “We expect companies doing business with the government to comply with their contractual obligations. This office will continue to pursue those responsible for undermining the benefits that the government has bargained for.”
“The Medicaid program provides health care benefits to low-income individuals and families. Billing for transportation services that were never provided is a waste of valuable taxpayer funds that are intended to provide critical services to those in need,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “This settlement is an example of how the State and the Federal government can work together to recoup and deter overbilling practices.”
“Not only did the Montachusett Regional Transportation Authority try to steal from a government program intended to support a vulnerable population, but they saddled taxpayers with the bills,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement underscores the FBI’s commitment to working with our law enforcement partners in rooting out Medicaid fraud and ensuring that businesses aren’t taking more than what they have legitimately earned.”
U.S. Attorney Lelling, Massachusetts Attorney General Maura Healey, HHS-OIG SAC Coyne and FBI Boston SAC Bonavolonta made the announcement today. The matter was handled by Assistant U.S. Attorney Evan Panich of Lelling’s Office.
Topeka Man Pleads Guilty in RobberiesRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty today to driving a getaway car in two robberies, U.S. Attorney Stephen McAllister said.
Ernesto Negrete Jr., 30, Topeka, Kan., pleaded to two counts of robbery. In his plea, he admitted being involved in a robbery at Panderia Monterrey Bakery, 3154 S.E. 6th Avenue in Topeka, and a robbery at Pablanos Grille, 3035 S.E. 6th Avenue in Topeka. Negrete said that in both cases he drove the car while co-defendants Javier Martinez and Victor Arellano entered the stores masked and brandishing handguns. Martinez and Arellano are awaiting trial.
Negrete’s sentencing is set for Oct. 27. He could face up to 20 years in federal prison and a fine up to $250,000 on each count.
McAllister commended the FBI and Assistant U.S. Attorney Greg Hough for their work on the case.
Three Members of the Hualapai Indian Tribe Sentenced to Federal Prison for AssaultRead the Press Release
PHOENIX, Ariz. – Last week, Doncio Eagle Havatone, 35, of Peach Springs, Arizona was sentenced by United States District Judge Steven P. Logan to 120 months in prison followed by three years of supervised release. Havatone previously pleaded guilty to assault with a dangerous weapon.
Havatone’s co-defendants were sentenced by United States District Judge Steven P. Logan earlier this year. On July 6, Morgan Cook, 36, of Peach Springs, Arizona was sentenced to 38 months in prison, followed by three years of supervised release after pleading guilty to assault with a dangerous weapon. On February 24, Dylan Dean Davis, 25, of Peach Springs, Arizona was sentenced to 87 months in prison, followed by three years of supervised release after pleading guilty to assault resulting in serious bodily injury.
On March 1, 2019, Havatone, Davis, and Cook assaulted the victim, a member of the Hualapai Indian Tribe, causing her to sustain serious bodily injury. The assault happened on the Hualapai Indian Reservation. Havatone, Cook, and Davis are also members of the Hualapai Indian Tribe.
The Federal Bureau of Investigation and the Hualapai Nation Police Department conducted the investigation in this case. Assistant United States Attorney Christina J. Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-08063-PCT-SPL
RELEASE NUMBER: 2020-064_Havatone et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Chicago-Area Residents Charged with Conducting Online Romance Fraud and Other SchemesRead the Press Release
CHICAGO — An undercover federal law enforcement investigation has identified a variety of cyber-enabled fraud conspiracies allegedly carried out by two Nigerian nationals and a U.S. citizen residing in the Chicago suburbs.
One of the alleged schemes involved “romance scams,” in which a conspirator builds trust with a victim through a purported online romance before convincing the victim to send money to a predetermined recipient. The conspirators allegedly communicated with victims throughout the United States via social media and dating websites, including Match.com and OKCupid.com. The charges allege that the conspirators also engaged in other cyber-enabled frauds, including a “business email compromise” scheme and an inheritance fraud. The alleged scams resulted in a loss to victims of at least $750,000, the complaint states.
Charged with conspiracy to commit wire fraud are SAMUEL ANIUKWU, 46, a Nigerian national residing in Romeoville; ANTHONY EMEKA IBEKIE, 55, a Nigerian national residing in Oswego; and JENNIFER GOSHA, 48, a U.S. citizen residing in Oak Park. All three defendants were arrested last week. Aniukwu is scheduled to appear for a detention hearing today at 2:30 p.m. before U.S. Magistrate Judge Susan E. Cox. Ibekie is scheduled to appear for a detention hearing before Judge Cox on July 24, 2020, at 9:30 a.m. Gosha has been released on bond.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Robert Berlin, DuPage County State’s Attorney. Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Paige Nutini represent the government.
In the business email compromise scheme, the conspirators allegedly defrauded victims by targeting corporate email accounts via computer intrusion techniques, the complaint states. Correspondence to those email accounts were blocked while the conspirators used them to communicate with unsuspecting victims in an attempt to induce fraudulent wire transfers. In the inheritance fraud scam, the conspirators fraudulently told victims that they had received a substantial inheritance and needed to send money to the conspirators in order to claim it, the complaint states.
The charges allege that the defendants created fictitious business entities and opened numerous bank accounts in those entities’ names in order to launder proceeds from the fraud schemes. During a court-authorized search last week of Aniukwu’s residence, law enforcement seized multiple digital devices, including a cellphone that contained letters purported to be from “Standard Charter Financial Group,” according to the government’s memorandum in support of Aniukwu’s detention. The letters were addressed to victims regarding processing of the bogus inheritance payments, the memorandum states.
The charge in the complaint carries a maximum sentence of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that a complaint contains only accusations and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Syracuse Woman Charged with Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Phoenix Phan, age 61, of Syracuse, made her initial appearance and was arraigned today in Federal Court in Syracuse, New York on charges that she filed false federal income tax returns for herself, and aided and assisted in the filing of false federal income tax returns for others as part of her tax preparation business. Following today’s court appearance, Phan was released pending trial. The announcement was made by United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”).
As alleged in the indictment, Phan failed to report gross receipts on her personal income tax returns for tax years 2013-2017. The indictment also alleges that Phan aided and assisted others in filing false federal income tax returns, including by falsely reporting: (1) business income that the taxpayer did not earn (to increase a tax credit); (2) rental losses; and/or (3) that the taxpayer had a filing status (e.g., head of household) that the taxpayer did not actually have.
The charges against Phan carry a maximum sentence of three years in prison per count, a fine of up to $100,000 per count, and a term of supervised release of up to one year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Internal Revenue Service – Criminal Investigation (“IRS-CI”) and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
St. Petersburg Postal Clerk Indicted for Stealing Mail and Passport Applications to Commit Bank FraudRead the Press Release
Tampa, Florida - United States Attorney Maria Chapa Lopez announces the return of an indictment charging Jasmine Wynne (30, Ruskin) with one count of conspiracy to commit bank fraud, five counts of aggravated identity theft, and one count of theft of a postal key. Wynne faces up to 30 years in federal prison for the conspiracy count, up to 2 years’ imprisonment for each identity theft count, and up to 10 years’ imprisonment for theft of a postal key. The indictment also notifies Wynne that the United States intends to forfeit assets used in the offense.
According to the indictment, Wynne, a Postal Clerk with the United States Postal Service (USPS) working at the St. Petersburg Retail Post Office location, conspired with others to defraud federally insured financial institutions. Wynne used her status and the special access she had as an USPS employee to open First-Class mail and to photograph personal identifying information (“PII”) and bank account information. Wynne then forwarded the photographs to co-conspirators for use in a bank fraud scheme. The indictment further alleges that Wynne also photographed United States Passport applications that was processed at her post office location to gain applicants’ PII and bank account information. She then forwarded that information to co-conspirators.
In addition, the indictment charges Wynne with using her position as a USPS employee to access and steal restricted postal arrow keys – special master keys that open USPS collection boxes, banks of mailboxes at apartment complexes, and any other mailbox keyed with an arrow lock. Wynne then provided the postal arrow keys to co-conspirators for use in the charged conspiracy.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Inspection Service and the U.S. Department of State’s Diplomatic Security Service. It will be prosecuted by Assistant United States Attorney Craig Gestring.
Saratoga County Man Charged with Transporting Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas Kopach, age 33, of Gansevoort, New York, was arrested yesterday on a charge of transporting child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
A criminal complaint alleges that in February 2020, Kopach knowingly emailed a video depicting the sexual abuse of a minor. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of the charge set forth in the complaint, Kopach faces at least 15 years and up to 40 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statue the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Following several initial hearings before United States Magistrate Judge Christian F. Hummel, Kopach remains detained pending a detention hearing on July 28.
Anyone with information relevant to this investigation may call HSI’s Albany office at (518) 220-2129.
This case is being investigated by HSI, with assistance from the New York State Police, and is being prosecuted by Assistant United States Attorney Rachel Williams.
This case is prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Registered Sex Offender Sentenced to 25 years in Prison for Sex Offenses Against Two Minors, One an Appleton Area ResidentRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 20, 2020, Cort W. Davis II (age: 32) of Rochester, New York, was sentenced to 25 years in federal prison by Senior District Judge William C. Griesbach.
Davis, a registered sexual offender in the State of New York, initiated an online relationship with two children, one living in the Appleton, Wisconsin area, and the other living in Southern California. He identified himself online as “Caleb” and purported to be 19 years-old. In April of 2018, Davis travelled to Southern California where he rented a motel room and sexually abused a 14 year-old minor over a number of days, engaging in an array of sadomasochistic behavior and other forms of violent abuse. David then departed California for Wisconsin where he sexually abused a 13 year-old minor outside the Fox River Mall and days later at a nearby motel he procured to carry out his abuse. Investigators arrested Davis at the motel and, ultimately, uncovered digital videos of Davis sexually abusing the children after examining his cell phone.
Davis was convicted of “Possessing Sexual Performance by a Child Under 16 Years-Old” in Monroe County, New York, in 2015. He was required to register as a sexual offender until 2021. In 2017, Davis was convicted of “Failure to Report a Change in Address or Status by a Sex Offender” in Henrietta, New York.
In handing down the sentence, Judge Griesbach admonished Davis for his “horrible offenses” and for “stealing the girls’ innocence.” He noted that there were few mitigating factors considering the defendant’s actions and his previous criminal record. He further stated his belief that a 25-year prison sentence was both “just” and lengthy enough to protect the community. Upon the completion of his federal prison sentence, the defendant will serve the remainder of his life on supervised release.
This case was investigated by the Appleton Police Department, the Grand Chute Police Department, the Wisconsin Department of Justice, Division of Criminal Investigations, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
For further information contact:
Public Information Officer Kenneth Gales, (414) 297-1700
Follow us on Twitter
Registered Sex Offender from Chicago Charged with Possessing Child PornographyRead the Press Release
CHICAGO — A Chicago man who allegedly possessed numerous sexually explicit videos of children has been indicted on a federal child pornography charge.
JOSEPH WERWATH, 36, is charged with one count of possession of child pornography. The charge carries enhanced sentencing penalties, including a mandatory minimum sentence of ten years in federal prison and a maximum of 20 years, due to a prior qualifying conviction involving a minor, for which Werwath has had to register as a sex offender.
During a court-authorized search of Werwath’s residence last month, federal law enforcement observed a video depicting child pornography playing on an electronic device in a bedroom, according to a criminal complaint previously filed in the case. Approximately 40 other videos depicting child pornography were discovered on the device, according to the complaint.
Werwath is currently detained in federal custody. He was arraigned in U.S. District Court in Chicago this morning and pleaded not guilty to the child pornography charge. The next court date was set for Sept. 9, 2020, at 1:30 p.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Chicago Police Department, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office. Valuable assistance was provided by the Harwood Heights Police Department. The government is represented by Assistant U.S. Attorney Jason A. Julien.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Previously Convicted Sex Offender Pleads Guilty to Federal Charge of Enticement of a Minor to Engage in Sexual ActivityRead the Press Release
Baltimore, Maryland – Jeffrey R. Cummings, Jr., age 35, of Baltimore, Maryland, pleaded guilty today to a federal charge for enticement of a minor to engage in illegal sexual activity during a period of time when Cummings was required to register as a sex offender. Cummings has been detained since his arrest on July 19, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in 2008 Cummings was convicted of a sex offense in Anne Arundel County, Maryland, based on his sexual contact with a 10-year-old boy, and was required to register as a sex offender in Maryland. From March 2017 through July 2019, Cummings operated multiple social media accounts using a variety of aliases, including elaborate, false female personas, to communicate with minor boys under the false pretense that he was a minor girl. Using his accounts, Cummings coerced and enticed at least six minor male victims, ranging in age from 13 to 16 years old, to send Cummings pictures and videos of themselves engaged in sexually explicit conduct. Cummings also admitted that he further distributed some of the sexually explicit photos received from the victims.
As detailed in the plea agreement, during his conversations with the victims, Cummings, posing as a teenage girl, requested the victims to send “her” a sexually explicit photograph or video. Thinking that they were communicating with a teenage girl, and often after Cummings sent the victims pictures of a teenage girl purported to be pictures of “herself,” including nude images of a pubescent female’s genital area, at least five of the minor victims sent Cummings sexually explicit images of themselves. In a group chat that included a minor boy and at least two of Cummings’ alias social media accounts, Cummings threatened to publicly post a sexually explicit video of a minor victim if the victim did not meet his demands. Despite the minor boy’s objections, Cummings subsequently posted the video to a group chat on a social media platform. Using his alias accounts Cummings continued to taunt the minor boy and threatened to post the victim’s video and address online, and send the video to the victim’s teachers.
Throughout his conversations with several of the victims, Cummings requested that the victims send him their previously worn socks by mail. Cummings claimed that they were for a “science project,” and even offered one victim “$20 a pair.”
Law enforcement executed a search warrant at Cummings’ residence on July 19, 2019, and seized his cell phone, which contained images of child pornography, including sexually explicit images of the victims. The phone also had accessed several of Cummings’ alias social media accounts. After his arrest that same day, Cummings agreed to speak with investigators. Cummings made numerous statements attributing exchanges of nude photos on social media and the solicitation of dirty socks for a sexual fetish to his teenage son, stating that he had two sons, ages 15 and nine, who lived with his mother in Pennsylvania. Further, Cummings stated that he asked his brother to pick up socks from his post office box and deliver them to his son in Pennsylvania. In fact, Cummings is an only child, has not fathered or raised any children, and his mother has never raised or kept any children for Cummings.
Cummings faces a mandatory minimum of 10 years and up to life in prison for enticement of a minor to engage in unlawful sexual activity. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service and FBI for their work in the investigation, and thanked the Baltimore Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Mary W. Setzer and Christine L. Duey, who are prosecuting the federal case, and recognized Assistant U.S. Attorney Zachary A. Myers for his assistance.
# # #
President of Two Labor Unions Pleads Guilty in U.S. District Court in Maryland to Embezzling from UnionsRead the Press Release
Baltimore, Maryland – Sandra King, age 62, of Owings Mills, Maryland, pleaded guilty today to embezzlement from a labor organization. King was the president of two separate labor unions, both based in Owings Mills, that represented workers in Montgomery County, Maryland and Washington, D.C. King pleaded guilty to stealing more than $57,000 from those unions.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and U.S. Department of Labor, Washington District Office District Director Mark Wheeler.
According to her guilty plea, from October 2014 through September 2019, King served as president of The Federation of Police and Security (“FOPS”), formerly known as the National Union of Protective Services Association, which represents private security guards in Washington, D.C. and Bethesda, Maryland. King became president after the union’s previous president, J.C. Stamps, pleaded guilty to defrauding FOPS’s employee benefit plan. On October 3, 2014, investigators with the Department of Labor’s Office of Labor-Management Standards (OLMS) met with King to advise her of her fiduciary obligations as the president of FOPS and further instructed King that the union funds were to be used only for the benefit of union members and that the personal use of union funds was a violation of federal law.
From late 2014 to the present, King was also the president of the Alliance of Independent Workers (“AIW”), which represented the communication staff, mortuary staff, medical records staff, and the child fatality staff at the District of Columbia, Office of the Chief Medical Examiner. Like FOPS, King succeeded Stamps as president of AIW.
As detailed in her plea agreement, as president of FOPS and AIW, King was a fiduciary and had decision-making authority. King was the sole signatory on all FOPS and AIW bank accounts. King deposited dues from members of these unions and restitution payments from Stamps into the union bank accounts. Union dues were intended to fund union purposes, including bargaining with employers, litigating grievances, and providing any administrative support required by FOPS and AIW.
According to her guilty plea, from October 2014 through September 2019, while president of FOPS and AIW, King embezzled $50,939.41 from these unions--$20,368.76 from FOPS and $30,570.75 from AIW. King admitted that she used union funds for her personal benefit by writing checks to cash, making cash withdrawals at automated teller machines, and making personal purchases using the union debit card. King used union funds to purchase liquor, pay rent on her apartment, and purchase items at Target, Wal-Mart, Amazon, Apple iTunes, and at grocery stores. She also used union funds to pay for her personal life insurance and automobile insurance. Additionally, King’s personal expenditures often caused overdrafts on FOPS’s bank account, which caused FOPS to incur an additional loss of $6,388.50 in overdraft fees and penalties.
As part of her plea agreement, King will be required to pay restitution in the full amount of the unions’ losses, which is estimated to be at least $57,328.01.
King faces a maximum sentence of five years in federal prison for embezzling from the labor unions. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for October 19, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur commended the Department of Labor for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew Phelps, who is prosecuting the case.
# # #
Pittsburgh Woman Charged with Robbing Dollar Bank in City’s Oakland NeighborhoodRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Gloria Anderson, age 36, as the sole defendant.
According to the Indictment, on June 26, 2020, Anderson robbed the Dollar Bank in the Oakland neighborhood of Pittsburgh, and was arrested by City of Pittsburgh Police upon exiting the bank.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Sentenced for Identity Theft Scheme Using Counterfeit Credit and Debit CardsRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 36 months’ imprisonment and two years’ supervised release on his conviction of aggravated identity theft and use of counterfeit access devices, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Cheron Tucker, 23, formerly of Pittsburgh.
According to information presented to the court, on December 31, 2018, Tucker rented six rooms at the Hilton Garden Inn at 250 Forbes Avenue in Pittsburgh using a counterfeit debit card and a counterfeit New Jersey driver’s license, with a photograph of the defendant and the name and date of birth of another individual. The charge for the hotel rental was $2,435.40. Additionally, on March 17, 2019, the defendant rented a Lincoln Continental with a counterfeit credit card and New Jersey driver’s license in the same name. The rental agreement charge was $785.56. The court was further informed that Tucker also accepted responsibility for five counts of charges related to identity theft, and that the defendant is accountable for a loss of at least $15,000. Tucker has a lengthy criminal history that includes violent conduct, narcotics and firearms offenses, theft, resisting arrest, fleeing from police, and possessing firearms while on probation.
Assistant United States Attorney Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the United States Secret Service conducted the investigation leading to the successful prosecution of Tucker.
Physician Sentenced to Prison for Obstructing Tax InvestigationRead the Press Release
Richard MacAuley, M.D., lied to the IRS, withheld information, and provided a false document to impede an investigation of his company, Sleep Diagnostics of Michigan, P.C.
GRAND RAPIDS – U.S. Attorney Andrew Birge announced today that Richard MacAuley, M.D., 74, of Farmington Hills, Michigan, was sentenced to two years of imprisonment by U.S. District Judge Janet T. Neff. In January 2020, Dr. MacAuley pleaded guilty to corruptly endeavoring or obstruct and impede the due administration of the internal revenue laws, including by misleading IRS officers, withholding records from the IRS, and providing a false document in response to an IRS summons.
In December 2017, the IRS was investigating Dr. MacAuley’s chain of sleep study clinics, Sleep Diagnostics of Michigan, P.C. (“SDM”), for failing to pay over $500,000.00 in federal payroll taxes. The IRS sought to determine whether there was any basis to transfer and collect SDM’s outstanding taxes from an Okemos-based provider, Advanced Sleep Diagnostics of Michigan, P.C. (“ASDM”). While Dr. MacAuley was ASDM’s owner on paper, he withheld the ownership document from the IRS and falsely denied any relationship between the companies. Dr. MacAuley then falsely claimed that he sold SDM’s assets to ASDM in 2016. When the IRS issued a summons for the sales contract—a document that did not exist—two individuals created a fraudulent and backdated Asset Purchase Agreement for Dr. MacAuley to give the IRS. Dr. MacAuley signed the fake Asset Purchase Agreement and gave it to the IRS in May 2018 along with a cover letter claiming that the agreement was “in effect as of July 18, 2016.”
In imposing the sentence, Judge Neff noted that Americans “enjoy tremendous advantages being tax paying citizens of this country, but those advantages don’t come for free. Everyone must stand up and pay their taxes” and “tax evaders really do undermine our whole system.” Such tax evaders, Judge Neff emphasized, must know that there are “serious consequences if they are caught.”
“Dr. MacAuley obstructed the IRS’s efforts to collect over half a million dollars in payroll taxes, including tax revenue that funds the federal unemployment trust fund on which millions of Americans rely,” U.S. Attorney Birge said. “We will continue to work with our IRS partners to hold accountable those who defraud our tax system.”
“Obstructing or impeding an IRS officer or the administration of the Internal Revenue laws is a serious crime,” said Sarah Kull, Special Agent in Charge of IRS-Criminal Investigation for the Detroit Field Office. “Withholding material records and providing false or misleading documents to the IRS undermines the integrity of our financial system and will not be tolerated.”
This case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Adam B. Townshend represented the United States.
###
Panola County Felon Sentenced for Firearms PossessionRead the Press Release
TYLER, Texas – A 38-year-old Carthage, Texas, man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
On Jan. 22, 2020, a jury found Timothy Earl Brown guilty of being a felon in possession of a firearm and ammunition following a two-day jury trial before U.S. District Judge Jeremy D. Kernodle. Brown was sentenced to 60 months in federal prison today by Judge Kernodle.
According to information presented in court, on Oct. 14, 2016, law enforcement responded to a report of a prowler at a rural residence in Panola County. There, officers observed Brown in the wooded area near the home, carrying a rifle. Brown was later discovered to be also armed with a revolver. Brown was convicted in Panola County in 2000 for theft, in 2000 for escape, and in 2011, for sexual assault. As a felon, Brown is prohibited by federal law from owning or possessing firearms or ammunition. Brown was also previously convicted in the Eastern District of Texas for being a felon in possession of a firearm in 2004.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case was investigated by the Panola County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Jim Noble and Alan Jackson.
Ohio House Speaker, former chair of Ohio Republican Party, 3 other individuals & 501(c)(4) entity charged in federal public corruption racketeering conspiracy involving $60 millionRead the Press Release
COLUMBUS, Ohio – The Ohio Speaker of the House was arrested this morning and charged in a federal racketeering conspiracy involving approximately $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout.
It is alleged that Larry Householder, 61, of Glenford, Ohio, and the enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.
Four other individuals were also arrested and charged. They include:
- Mathew Borges, 48, of Bexley, a lobbyist who previously served as chair of the Ohio Republican Party;
- Jeffrey Longstreth, 44, of Columbus, Householder’s longtime campaign and political strategist;
- Neil Clark, 67, of Columbus, a lobbyist who owns and operates Grant Street Consultants and previously served as budget director for the Ohio Republican Caucus; and
- Juan Cespedes, 40, of Columbus, a multi-client lobbyist.
Generation Now, a corporate entity registered as a 501(c)(4) social welfare organization, was also charged.
The five individual defendants had initial appearances via video conference at 1pm today, at which time the case was unsealed.
According to the 80-page criminal complaint unsealed today, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing.
The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received approximately $60 million into Generation Now from an energy company and its affiliates during the relevant period.
As alleged, in February 2017, Longstreth incorporated Generation Now as a 501(c)(4) social welfare entity purporting to promote energy independence and economic development; however, the entity was secretly controlled by Householder. As Clark stated in a recorded conversation, “Generation Now is the Speaker’s (c)(4).” Pursuant to federal law, the names and addresses of contributors to 501(c)(4)s are not made available for public inspection.
In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of Generation Now. The defendants allegedly spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit. When asked how much money was in Generation Now, Clark said, “it’s unlimited.”
The affidavit filed in support of the criminal complaint also alleges:
- In 2018, the enterprise spent energy company-to-Generation Now money on approximately 21 different state candidates – 15 (including Householder) in the primary, and six additional candidates in the general election. The Enterprise spent more than one million in fall 2018 alone to flood the airways with negative ads against enterprise opponents. Most of these candidates won the 2018 general election. All who won voted for Householder as Speaker.
- Money passed from the energy company through Generation Now was used to pay for Householder campaign staff, which would otherwise have been paid by Householder’s candidate committee, Friends of Larry Householder.
- Householder received more than $400,000 in personal benefits as a result of the payments into Generation Now, including funds to settle a personal lawsuit, to pay for costs associated with his residence in Florida, and to pay off thousands of dollars of credit card debt.
- The enterprise paid $15,000 to an individual to provide insider information about the ballot initiative and offered to pay signature collectors for the ballot initiative $2,500 cash and plane fare to stop gathering signatures.
The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison.
“It takes courage for citizens to assist law enforcement in the ways detailed in the affidavit,” U.S. Attorney David M. DeVillers said. “We are grateful to those who felt a moral duty to work together with agents in bringing to light this alleged, significant public corruption.”
“All forms of public corruption are unacceptable,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “When the corruption is alleged to reach some of the highest levels of our state government, the citizens of Ohio should be shocked and appalled.”
The case is being investigated by the FBI. Deputy Criminal Chief Emily N. Glatfelter, Assistant United States Attorney Matthew C. Singer, as well as Assistant Deputy Criminal Chief Timothy Mangan and Assistant United States Attorney Megan Gaffney Painter, are representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Norwalk Felon Charged with Possessing Loaded Rifle with Obliterated Serial NumberRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging TYROME SAWYER, also known as “Tyrone Sawyer” and “Crack,” 30, of Norwalk, with one unlawful possession of a firearm by a convicted felon.
The indictment was returned on July 15, 2020. Sawyer appeared today before U.S. Magistrate Judge Robert M. Spector via videoconference and entered a plea of not guilty to the offense.
The indictment alleges that, on April 19, 2019, Sawyer possessed a loaded Hi-Point model 995, 9mm rile with an obliterated serial number, in Norwalk. Prior to that date, Sawyer was convicted in state court of felony firearm, drug and escape offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Sawyer has been detained in state custody since his arrest by Norwalk Police on April 19, 2019.
The charge of possession of firearm by a convicted felon carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
North Carolina Native Is Sentenced to Eight Years for Stealing Millions from MedicaidRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Tony Garrett Taylor, 40, a native and former resident of Harrisburg, North Carolina, currently residing in Brooklyn, N.Y., to 96 months in prison followed by two years of supervised release, for stealing more than $6.1 million from Medicaid and committing tax evasion, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Tony Taylor was also ordered to pay $6,121,655 to North Carolina Medicaid and $1,124,603 to the U.S. Internal Revenue Service as restitution.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID), join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from June 2015 to December 2017, Tony Taylor and his brother, Jerry Lewis Taylor, operated a scheme to defraud Medicaid of more $9.4 million by submitting false and fraudulent reimbursement claims for patient services that were either non-existent or mischaracterized to Medicaid. The brothers submitted the fraudulent claims through several companies they owned and/or operated, including Taylor Behavioral Health Center, LLC and Options Driven LLC, both located in Monroe, N.C.; Design for Change LLC located in Raleigh and elsewhere; and SHG Consultants, located in Gastonia, N.C. and elsewhere (collectively, the “Taylor businesses”). These entities specialized in providing outpatient behavioral health services to at-risk youth throughout North Carolina.
Court records show that, during the relevant time period, Tony Taylor recruited other co-conspirators to the scheme, including Ameera Ali, who provided billing services for the conspiracy and furnished Tony Taylor with prospective patient lists containing identifying information for eligible Medicaid beneficiaries. The beneficiary information obtained from Ali and others were used, in turn, to file fraudulent reimbursement claims for services that were never provided. To the extent that services were actually provided, the conspirators submitted to Medicaid fraudulent reimbursement claims that misrepresented the services rendered so as to obtain a higher reimbursement rate, a practice known as “upcoding.”
According to court documents, Tony Taylor also recruited Devon Rambert-Hairston, a licensed nurse practitioner and the director of one of the entities operated by the brothers, to review and sign-off on fictitious patient progress notes. Court records show that Rambert-Hairston never provided any behavioral health or medical services to the Medicaid beneficiaries or rarely interacted with them at all. To the extent that the beneficiaries received any treatment, those services were provided by an individual identified in court documents as J.B., who was not credentialed to provide those types of services.
Tony and Jerry Taylor also conspired with Christine Yvette Knight, who operated Connect and Move Staffing LLC in Florida. Knight’s role in the conspiracy was to create fraudulent treatment notes for the beneficiaries, and to prepare fake billing spreadsheets which were used by the brothers to further perpetuate the fraud.
During the course of the fraudulent scheme, Tony and Jerry Taylor caused hundreds of false and fraudulent claims to be submitted to Medicaid for false and fraudulent services. As a result, more than $9.4 million in fraudulent claims were submitted to Medicaid, resulting in approximately $6.1 million in fraudulent payments from Medicaid.
In addition to health care fraud, Tony Taylor also committed tax evasion, by failing to file timely and/or accurate U.S. Individual Income Tax Returns for tax years 2015, 2016, and 2017, and diverting fraudulent receipts from Medicaid to nominee entities and individuals. Tony Taylor also made personal expenditures using business accounts and Medicaid fraud proceeds, including spending more than $2.9 million for his “opulent lifestyle,” air fare, hotels, nightclubs, and shopping.
Tony Taylor pleaded guilty to health care fraud conspiracy and tax evasion. He is currently released on bond and upon designation of a federal facility he will report to the federal Bureau of Prisons to begin serving his sentence.
In announcing Tony Taylor’s sentence, Judge Conrad noted that Tony Taylor stole from programs designed to help disadvantaged children for personal gain and an opulent lifestyle.
Jerry Taylor is currently awaiting sentencing after pleading guilty to health care fraud conspiracy. Ameera Ali also pleaded guilty to health care fraud conspiracy and is currently awaiting sentencing. Devon Rambert-Hairston pleaded guilty to money laundering conspiracy and was sentenced to a year and a day in prison and a year of supervised release, and was ordered to pay $813,726 in restitution. Christine Yvette Knight pleaded guilty to making a false statement relating to health care matters. A sentencing date for Knight has not been set.
In making today’s announcement U.S. Attorney Murray thanked the FBI, the IRS, USPIS, and MID for their investigation of this case.
Assistant U.S. Attorneys Michael Savage and William Bozin of the U.S. Attorney’s Charlotte Office are prosecuting the case.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Nine Indicted in Wide-Ranging Bank Fraud ConspiracyRead the Press Release
PROVIDENCE – A Massachusetts used car dealer and eight others have been named in a federal superseding indictment brought in U.S. District Court in Providence, RI, charging them with allegedly participating in a wide-reaching conspiracy to defraud financial institutions in several states by obtaining fraudulent car loans secured with stolen personal identifying information and fraudulent documents created by members of the conspiracy.
It is alleged that Rolando E. Estrella, 32, of Dracut, Mass., a former owner of a used car dealership in Lawrence, MA, and at least eight others conspired to defraud financial institutions in Rhode Island, Massachusetts, Connecticut, New Hampshire, and several other states. As part of the scheme, the conspirators falsely identified complicit bank account holders as “sellers” and shell used car businesses created by members of the conspiracy to induce lenders to extend loans purportedly to purchase used cars. As part of the scheme false bills of sale, automobile titles, pay stubs, and proof of employment were created identifying both members of the conspiracy and the shell companies as the sellers of the vehicles.
It is alleged that members of the conspiracy used stolen personal identification and the actual identities of conspirators to apply for loans and to open bank accounts in which the proceeds of fraudulent loans were deposited, after which the proceeds were quickly withdrawn.
Estrella, first charged in an indictment returned in December 2019 as part of this on-going investigation by the United States Secret Service and the Social Security Administration, Office of the Inspector General/Office of Investigations, is scheduled to be arraigned in U.S. District Court in Providence on Thursday.
Also named in the indictment are Emilio J. Frias-Reyes, 29, Erickson M. Ventura-Martinez, 25, Hiancarlos Mosquea-Ramos, 27, Bryant Polanco, 27, and Jonathan A. Pimental, 28, of Lawrence, MA, Fernando Diaz, 32, of Haverhill, MA, and Juan E. Felix-Fernandez, 51, of Hartford, CT.
Frias-Reyes and Ventura-Martinez were arraigned in U.S. District Court in Providence on July 17, 2020, and released on unsecured bond. Polanco and Mosquea-Ramos were arraigned on July 20, 2020, and released on unsecured bond.
Arrest warrants have been issued for Diaz, Pimental and Felix-Fernandez.
The superseding indictment, unsealed in U.S. District Court in Providence on July 17, 2020, charges conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and fraudulent use of a Social Security number. An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The investigation and indictment are announced by United States Attorney Aaron L. Weisman, Acting Special Agent in Charge of the U.S. Secret Service Thomas P. Baker, and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
This indictment marks the latest in a series of charges brought in this matter and arrests made by the Social Security Office of Inspector General and the United States Secret Service involving members of a fraud ring operating throughout the northeast United States.
###
New Hampshire Man Sentenced to over Three Years in Prison for Possessing Firearm During Botched Drug Deal in Springfield, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ira Flowers, 37, of Claremont, New Hampshire was sentenced today to 41 months of imprisonment for possessing a 9mm semi-automatic pistol after having been convicted of multiple felonies. Chief U.S. District Judge Geoffrey Crawford also sentenced Flowers to a 2-year term of supervised release to follow his imprisonment.
At the sentencing hearing, Chief Judge Crawford found that Flowers possessed the firearm in connection with another felony offense, specifically the attempted possession with the intent to distribute marijuana and tetrahydrocannabinol (THC)-infused products. Testimony at the sentencing hearing established that Flowers brought the 9mm pistol to the Holiday Inn in Springfield, Vermont, where Flowers met with three others to exchange thousands of dollars for bulk marijuana and THC products. A struggle ensued during the drug transaction, and Flowers was stabbed in the neck, shot once in the leg (with the pistol he unlawfully possessed), and left in the hotel hallway bleeding profusely from his wounds. A search of the hotel room by the Vermont State Police resulted in the seizure of the 9mm pistol unlawfully possessed by Flowers, as well as a single 9mm casing.
Flowers has an extensive criminal record, including prior convictions for the sale of a controlled substance, violating a protective order, narcotic possession, assault, driving under the influence, resisting arrest, disorderly conduct, and theft of a firearm.
United States Attorney Christina Nolan commended the investigative efforts of the Vermont State Police, as well as the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). She stated, “This case highlights the extraordinary risk and harm that results from prohibited persons carrying firearms and from the mix of guns and the drug trade. The U.S. Attorney’s Office and its law enforcement partners will continue to prioritize prosecution of those who commit violence and violate federal gun laws, and we will seek serious punishment for those crimes.”
The United States is represented in this matter by Assistant U.S. Attorneys Spencer Willig and Jonathan Ophardt. The defendant was represented by Kevin Henry, Esq. of Primmer Piper Eggleston & Cramer PC.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Nevada COVID-19 Task Force Provides Guidance for Victims of Unemployment Benefits FraudRead the Press Release
LAS VEGAS, Nev. – Nevada’s COVID-19 Task Force, formed by U.S. Attorney Nicholas A. Trutanich and Attorney General Aaron D. Ford, has recently received reports suggesting that personal identifying information of some present and past Nevada residents is being used to file fraudulent applications for unemployment benefits.
Potential victims typically learn of these suspected unlawful activities when either they receive a letter from the Nevada Department of Employment, Training and Rehabilitation (DETR) relating to an application for benefits they never sought, and/or their employer receives a similar notification from DETR.
“The COVID-19 Task Force is committed to protecting the integrity of the unemployment benefits program,” said U.S. Attorney Nicholas A. Trutanich. “We will continue working closely with our law enforcement partners and colleagues on the Task Force to safeguard the program for Nevadans facing difficult situations who need our help.”
“This Task Force was formed to fight fraud and prosecute those using COVID-19 for their own financial gain,” said Attorney General Aaron D. Ford. “Thousands of Nevadans have lost their jobs and are facing extreme financial hardship. I urge Nevadans affected by or with information about fraudulent unemployment applications to file a complaint with the FBI’s Internet Crime Complaint Center and DETR.”
Individuals who believe that someone is fraudulently using their identity to apply for unemployment benefits should file a complaint through the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov and to DETR’s Fraud Report. Nevada’s COVID-19 Task Force is working with DETR to assess the problem. Due to the fact that the investigation is ongoing, no further information about the details of the investigation will be provided at this time.
In April 2020, U.S. Attorney Nicholas A. Trutanich and Nevada Attorney General Aaron D. Ford announced the formation of Nevada’s COVID-19 Task Force. The Task Force is comprised of local, state and federal investigators and prosecutors with significant experience in handling complaints and cases related to general fraud, heath care fraud, Medicaid fraud, insurance fraud, workers’ compensation fraud and cybercrime, among others. Together, they have been sharing information and resources to protect Nevadans from those using the COVID-19 pandemic to take advantage of consumers.
The following are some tips to protect yourself against unemployment scams and identity theft:
- Never give out personal or financial information over the phone.
- Thoroughly review all financial statements for any unusual activity. Immediately contact the company if an item looks suspicious.
- Shred or destroy credit card statements, bills, insurance papers or bank statements before throwing them out.
- Do not carry your Social Security Card in your wallet.
- Be wary of anyone calling to “confirm” personal or financial information. Often, these are criminals trying to obtain those facts under the guise of “confirmation”.
- Release your Social Security number only when absolutely necessary or when required by law.
- Ask how you can remove unnecessary information or information that is not required for the service you are receiving.
- Check credit reports, banking information, medical information that may have details that need to be removed or secured.
- Do not provide or validate your personal information from contacts not initiated by you.
- Protect and update passwords to your online accounts regularly.
- When creating passwords and PINS, do not use anything that could be discovered easily by thieves.
- Memorize all your passwords and PINS.
- Remove old accounts and passwords that are no longer in use.
- Use additional security measures provided for your accounts wherever available.
- Contact your local police department if you think your identity has been stolen.
- If you think an identity thief is using your Social Security number, call the Social Security Fraud Hotline at (800) 269-0271.
###
Nashville Gang Member Sentenced to Federal PrisonRead the Press Release
NASHVILLE, Tenn. – July 21, 2020 - Shamain Johnson, 42, of Madison, Tennessee, was sentenced yesterday to 14 years in prison for operating a multi-state drug trafficking operation, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Johnson was indicted in June 2017 and convicted in August 2019, after a four-day jury trial.
According to evidence presented at trial and at the sentencing hearing, Johnson repeatedly transported kilograms of cocaine and prescription pills from Texas and Arizona to Middle Tennessee. Once the drugs arrived, Johnson packaged them and sold them to drug users in and around the Madison, Tennessee area. Johnson also directed others to sell drugs for him as well. During the summer and fall of 2016, Metropolitan Nashville Police Department (MNPD) officers repeatedly arrested Johnson for numerous drug crimes. On one occasion, he was arrested for selling heroin and cocaine, but released from custody shortly thereafter. Five days later, Johnson sold heroin to a female who died moments later, and her decomposed body was later found in a ditch in Madison.
In the spring of 2017, Johnson kidnapped, bound, and repeatedly assaulted a drug trafficking business associate at an apartment in Hendersonville, Tennessee. Johnson believed that the associate stole $250,000 in cash that was intended to pay members of a Mexican cartel. When the associate refused to tell Johnson were the money was, Johnson boiled cooking grease, which he intended to pour on the man’s genitals. The associate was able to use a lighter and burn the zip tie binding his ankles, and escaped from the residence. After Johnson was arrested for this offense, he paid a witness to try to have her recant her prior statements to police that related to Johnson’s drug trafficking. This witness refused to identify Johnson at trial but the jury convicted him of one drug trafficking offense and acquitted him on another count.
Additional evidence and testimony introduced established that Johnson is a member in the Rolling 40’s Crips Street Gang.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the Drug Enforcement Administration; Homeland Security and Investigations; the Metropolitan-Nashville Police Department; the Tennessee Highway Patrol; the Goodlettsville Police Department; and the Hendersonville Police Department. Assistant U.S. Attorneys Ahmed Safeeullah and Josh Kurtzman prosecuted the case.
# # # # #
Monroe County Man Charged with Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Delvin Hutchinson, age 28, of Stroudsburg, Pennsylvania, was indicted on June 23, 2020, by a federal grand jury with making false statements in connection with the purchase of three firearms from federally licensed firearms dealers. The indictment was unsealed following Hutchinson’s recent arrest.
According to United States Attorney David J. Freed, Hutchinson is charged with providing false information regarding the purchase of three firearms from Dunkelberger’s Sports Outfitter, in Stroudsburg, on March 27, 2019 and March 28, 2019.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Mexican Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
PITTSBURGH, PA- A citizen of Mexico pleaded guilty in federal court to one count of illegally entering the United States, and was sentenced to 10 months’ imprisonment, followed by one year of supervised release, United States Attorney Scott W. Brady announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Margarito Macias-Perez a/k/a Misael Deleon, 53.
According to information presented to the court, on July 9, 2019, the defendant was arrested for a DUI by the Pittsburgh Bureau of Police. He later failed to appear for a hearing related to the DUI, and a bench warrant was issued for his arrest. As the defendant had entered the country illegally, and had previously been removed from the United States on four separate occasions, the matter was brought to the attention the Department of Homeland Security Immigration and Customs Enforcement, who arrested him on January 9, 2020.
Assistant United States Attorney Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the U.S. Immigration and Customs Enforcement conducted the investigation leading to the successful prosecution of Macias-Perez.
McNairy County Man Sentenced to 38 Years for Two Armed Bank RobberiesRead the Press Release
Jackson, TN – After a three-day jury trial in October 2019, a federal jury convicted Gene Allen Howell, 39, of Selmer, Tennessee of two counts of aggravated bank robbery, two counts of using a firearm during a crime of violence, and being a felon in possession of a firearm. On July 20, 2020, Howell was sentenced to 466 months in federal prison. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on August 25, 2017, Howell robbed the Home Banking Company located in Finger, Tennessee using a handgun. He pointed the handgun at all three female employees and threatened to kill them if they did not comply with his commands. Howell had stolen a utility vehicle from Selmer, which he rode to the bank and used thereafter to evade capture. The utility vehicle was later found abandoned in a wooded area.
On October 14, 2017 Howell attempted to rob The Peoples Bank located in Reagan, Tennessee using a .45 caliber pistol. He hid nearby, and attempted to accost two bank employees as they arrived for work, but they had just entered the secure tellers' area in the bank. Unable to gain access to the teller area, Howell fired the pistol at the head of one of the employees, but she was protected by bullet resistant glass.
Howell and his co-defendant, who served as the getaway driver, were arrested 10 days later in Alcorn County, Mississippi on drug charges. Law enforcement found in Howell's possession two pistols, including one used in the Reagan shooting; ammunition; and clothing worn during the robberies. The co-defendant testified against Howell at trial, and entered a guilty plea.
Howell has an extensive criminal history, including prior convictions for aggravated assault, theft, and drug charges. Chief Judge Anderson took special note of the danger Howell posed to the public as well as his extensive criminal history as aggravating circumstances when imposing the lengthy sentence.
On July 20, 2020, Howell was sentenced before Chief U.S. District Court Judge S. Thomas Anderson to 466 months in federal prison followed by 8 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Violent crime affects and endangers all communities in West Tennessee, both urban and rural. Howell’s brazen and disturbing armed robbery of two small community banks terrorized the rural community and inflicted fear and harm on multiple victims. This lengthy sentence is just punishment for his violent and recidivist criminal conduct, and the citizens of McNairy and Henderson Counties are safer because he has been removed from the community."
This case was investigated by the Federal Bureau of Investigation, Henderson County Sheriff's Department, McNairy County Sheriff's Department, Chester County Sheriff's Department and Alcorn County, Mississippi Sheriff's Department.
Assistant U.S. Attorneys Matt Wilson and Josh Morrow prosecuted this case on behalf of the government.
###
Manchester Convenience Store Employee Pleads Guilty to Defrauding Federal Food Stamp ProgramRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SIDDIQ CHAUDHARY, 70, of South Windsor, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall to food stamp fraud offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the guilty plea proceeding occurred via videoconference.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents and statements made in court, Chaudhary worked at Manchester Quick Mart, located at 262 Oakland Street in Manchester. From November 2016 to January 2020, Chaudhary and others at Manchester Quick Mart illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including gasoline and male enhancement pills. Chaudhary and others charged the customers’ food stamp cards a premium of approximately 40 percent or more for these illegal transactions.
Chaudhary was arrested on a federal criminal complaint on January 23, 2020.
Chaudhary pleaded guilty to one count of conspiracy to commit food stamp fraud, and one count of food stamp fraud. Judge Hall scheduled sentencing for October 13, 2020, at which time Chaudhary faces a maximum term of imprisonment of 10 years.
Chaudhary is released on a $100,000 bond pending sentencing.
This investigation is being conducted by the U.S. Department of Agriculture, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anastasia King.
Man Sentenced to Prison for Third Illegal Entry into the United StatesRead the Press Release
LAS VEGAS, Nev. — Pedro Morales-Carrillo, 32, a native and citizen of Mexico who has twice been convicted of drug trafficking in Nevada, was sentenced today by U.S. District Judge Kent J. Dawson to seven years and three months in prison to be followed by three years of supervised release for illegal reentry into the United States, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Morales-Carrillo, known by law enforcement to use at least four aliases, pleaded guilty in March 2020 to one count of being a deported alien found in the United States. Following today’s sentencing hearing, he was remanded to the custody of the U.S. Marshals Service.
According to court documents and admissions that Morales-Carrillo made in court, in February 2009 and October 2010, Morales-Carrillo was deported from the United States to Mexico. In October 2010, he unlawfully reentered the United States and remained in the country until he was found and detained in June 2017. Morales-Carrillo has prior felony convictions in Clark County for trafficking in a controlled substance (methamphetamine), conspiracy to violate the Controlled Substance Act, trafficking in a controlled substance (cocaine and methamphetamine), and in Arizona for being a deported alien found in the United States.
The charges resulted from an investigation by the U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Kimberly Frayn prosecuted the case.
###
Malden Man Indicted for CARES Act Pandemic Unemployment Fraud and Identity FraudRead the Press Release
BOSTON – A Malden man was charged today with identity fraud and with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.
Wagner Sozi, 32, was indicted on two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim to the United States. Sozi was initially charged by criminal complaint and arrested on June 25, 2020. He was released on conditions following a detention hearing before U.S. Magistrate Court Judge David H. Hennessy on June 30, 2020.
Charging documents allege that Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi allegedly obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who had worked for this realty company, and agents found various files belonging to the company in Sozi’s apartment. Numerous identity theft victims tied to Sozi had been clients of this realty company, including at least one person in whose name a fraudulent PUA claim was filed.
Court documents reflect that Sozi, along with a female accomplice, opened credit accounts at an office supply retailer under various fake identities and then used these accounts to purchase Visa gift cards, resulting in a loss to the retail chain of more than $100,000. Sozi allegedly used another stolen identity to purchase a Rolex for more than $15,000. It is further alleged that he also possessed a Maine driver’s license, bearing his photograph and the name of an identity theft victim, which was used to open a bank account and to make large purchases at an Apple Store.
Following his arrest on June 25, 2020, agents seized documents from Sozi’s apartment, including a PUA debit card in another individual’s name. Further investigation revealed that the PUA claim associated with the seized debit card listed Sozi’s address as the mailing address and that another fraudulent PUA claim had been submitted under Sozi’s own name but with another person’s Social Security number.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. The false claim charge provides for a sentence of up to three years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit, the Massachusetts State Police and the Malden, Medford and Braintree Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Large-Scale Drug Trafficker Sentenced to 15 Years in Federal Prison for Drug and Gun Crimes as Well as Illegal Reentry into the United States After DeportationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Carlos Eduardo Lopez-Romero, age 25, a Mexican national in the United States illegally, was sentenced to serve 180 months (15 years) in federal prison, followed by 5 years on supervised release, for methamphetamine and heroin trafficking, possession of a firearm while trafficking drugs, and unlawful reentry after a prior deportation. The Denver office of the Federal Bureau of Investigation (FBI) joined in today’s announcement.
According to the stipulated facts contained in Lopez-Romero’s plea agreement, the defendant and at least two other individuals frequently dealt large quantities of methamphetamine and heroin in Denver and Lakewood, Colorado. From November 2018 to February 2019, the defendant sold approximately five pounds of methamphetamine and one pound of heroin to a FBI confidential human source over the course of six transactions. A search of a storage unit which belonged to the defendant resulted in the seizure of an additional six pounds of methamphetamine, three pounds of heroin, two semiautomatic pistols, and ammunition.
The defendant is a native and citizen of Mexico, born in Tepic, Nayarit, Mexico. The defendant was removed from the United States on November 18, 2013, through San Isidro, California. Shortly after his removal, he knowingly reentered the United States near Tijuana, Mexico/San Diego, California, without receiving the consent of the proper legal authority to reapply for admission to the United States.
“Lopez-Romero came to the United States illegally just so he could become a drug trafficker to American citizens,” said U.S. Attorney Jason Dunn. “But the FBI caught on, and now he will spend 15 years in federal prison and face deportation after he pays his debt to society.”
“The FBI will continue to work closely with our federal, state, and local law enforcement partners to combat illegal drug trafficking throughout Colorado,” said FBI Denver Special Agent in Charge Michael Schneider. “Today’s lengthy sentence of Lopez-Romero should serve as a reminder to those who prey on our communities – this criminal activity will not be tolerated and those who participate will be brought to justice.”
Lopez-Romero was remanded into custody at the conclusion of his sentencing hearing. This prosecution was part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-0097. The defendant was prosecuted by Assistant U.S. Attorney Peter McNeilly.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Jamaican National Sentenced to More Than Three Years in Federal Prison for Illegal Reentry and AbscondingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Conrad Paul Golding (49, Orlando) to three years and one month in federal prison for illegally reentering the United States after being deported. Golding had pleaded guilty on April 15, 2019.
According to court documents, after having pleading guilty to the above offense, Golding was placed on house arrest and given a bond that was co-signed by family members. Golding’s sentencing hearing was scheduled for June 17, 2019, but he removed his electronic monitoring equipment and fled from law enforcement. A bench warrant was issued and Golding was arrested in New Jersey on January 31, 2020.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, U.S. Immigration and Customs Enforcement.
Hephzibah man sentenced to 22 years in federal prison for producing child pornographyRead the Press Release
AUGUSTA, GA: A Hephzibah man arrested at an Augusta motel when a 14-year-old boy signaled that he was in danger has been sentenced to federal prison for production of child pornography.
Richard Hunt Moore Jr., 49, of Hephzibah, Ga., was sentenced by U.S. District Court Chief Judge J. Randal Hall to 264 months in prison and ordered to pay restitution of $1 million, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Moore will be required to serve 20 years on supervised release.
There is no parole in the federal system.
“This monstrous predation came to an end when a child in danger reached out to a motel worker, and that alert staff member quickly notified authorities,” said U.S. Attorney Christine. “The act of seeing something and saying something allowed law enforcement to do something by shutting down Moore and his fellow predators before another child could be harmed.”
According to court documents and testimony, the investigation began when Moore was found with a minor at a motel in Augusta. After questioning Moore, Columbia County Sheriff’s Office investigators and the FBI discovered child pornography on electronic devices in Moore’s possession. Those images led to other defendants in the case, and to their indictment on federal charges.
Moore pled guilty to one count of Production of Child Pornography, as did Charles Casey Garner, 40, of Brooklet, Ga., and Carl Scott Ruger, 40, of Guyton, Ga. Garner previously was sentenced to 15 years in prison, ordered to pay $1 million in restitution, and to serve 15 years of supervised release after completion of his prison term, which is to run concurrently with any sentence for state charges he faces in Effingham County. Ruger is awaiting sentencing.
A fourth target in the investigation committed suicide in Illinois before questioning. Moore faces prosecution for additional charges in state court.
“Predators like Moore have no place in a civilized society. Their victims are re-victimized every time their images are shared or viewed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI remains committed to protecting our young citizens and is thankful for the law enforcement partnerships that make it possible to stop people like Moore from victimizing any more children.”
“This case sends a message not just to those who look to prey on our children, but also reiterates ‘If You See Something, Say Something.’ In this case, an observant worker helped save a child from unimaginable evil,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “I am pleased by the results in this case as well as the great work that HSI and its partners are doing to protect our youth.”
The cases were investigated by HSI and the FBI, along with the Columbia County Sheriff’s Office and the Effingham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Tara Lyons and Marcela C. Mateo.
Grand Rapids Man Sentenced to 42 Years for Stealing Guns, Witness Retaliation, Arson, and Drug CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. District Judge Janet T. Neff sentenced Charles Edward Skipp of Grand Rapids to 42 years in prison, announced U.S. Attorney Andrew Birge. Skipp pleaded guilty to 10 felony offenses in February 2020, which included being a felon in possession of firearms, stealing firearms from a licensed firearm dealer, retaliating against a witness, discharging a firearm during and in relation to a crime of violence, knowing transfer of firearms for use in a crime of violence, aiding and abetting retaliating against an informant, aiding and abetting arson in the commission of a federal felony, attempted possession with intent to distribute heroin, discharging a firearm during and in relation to a drug trafficking crime, and knowing transfer of a firearm for use in a drug trafficking crime. When imposing the 42 year sentence, Judge Neff referred to Skipp as a “one man crime spree.”
Skipp stole 89 guns from Family Farm & Home in Cedar Springs in 2017. He attempted to cover his tracks by intimidating and retaliating against a witness to the theft, which included shooting at the witnesses’ house and later setting it on fire. Skipp also used one of the stolen guns to rob and shoot a drug dealer. Many of the stolen firearms remain unaccounted for and law enforcement is still attempting to locate them. Before his latest crimes, Skipp had prior convictions for carrying a concealed weapon, reckless discharge of a firearm causing injury, armed robbery, being a felon in possession of a firearm, and domestic assault.
“This sentence represents good news for the community, which is much safer with Mr. Skipp in prison. And the 42-year sentence sends an unmistakable message to anyone else who might embark on a way of life in which one dangerous crime begets another and so on: Your spree will end with you in prison for decades; so don’t even start,” commented U.S. Attorney Birge.
“We often underestimate the enormous impact one lawless person can have in our community,” stated James Deir, Special Agent in Charge for ATF’s Detroit Field Division. “We all deserve to feel safe working and living in our community. Through hard work with our law enforcement partners in the Grand Rapids area, we have removed this violent criminal from our streets, so that we all can feel safer going about our daily lives.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives worked with the Grand Rapids Police and Kent County Sheriff’s Departments to investigate this case as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. As part of this initiative, the U.S. Attorney’s Office, county prosecutors’ offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
###
Glendive man admits making child pornography videosRead the Press Release
BILLINGS – A Glendive man today admitted producing and possessing videos containing images of minors engaged in sexually explicit conduct, U.S. Attorney Kurt Alme said.
Anthony Dwayne Boldt, 44, pleaded guilty to production of child pornography and to possession of child pornography. Boldt faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine and from five years to life of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Boldt was detained pending further proceedings.
In court documents filed in the case, the prosecution said law enforcement received information in January that Boldt may have been filming sexual activity with a juvenile girl. Law enforcement also received digital storage cards that came from Boldt's residence. The cards contained files confirming the reported activity.
Law enforcement served a search warrant on Boldt's residence and seized multiple items of electronic media. A forensic analysis of the media found videos of the defendant and the victim engaging in sexually explicit conduct in addition to other victims, including prepubescent children, engaging in similar conduct. In an interview with law enforcement, the victim confirmed that she was person depicted with Boldt in many of the videos and that Boldt had sexually assaulted her since about 2014.
Assistant U.S. Attorney Zeno Baucus is prosecuting the case, which was investigated by the FBI.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
XXX
Gas Station and Tobacco Store Owner Pleads Guilty to Cigarette TraffickingRead the Press Release
RICHMOND, Va. – A Lorton man pleaded guilty yesterday to participating in a conspiracy to traffic millions of dollars in contraband cigarettes.
According to court documents, Daniel K. Appiah, 65, owned and operated two companies that sold cigarettes between 2007 and 2020: a gas station and convenience store in Fredericksburg; and a tobacco store in Woodbridge. During the operation of his companies, Appiah received for each of them a “Certificate of Registration for the Collection of Virginia Sales and Use Tax,” which exempted Appiah from paying the Virginia sales and use tax when making business purchases. He thereafter opened business memberships at various wholesale clubs and with wholesale cigarette distributors in Virginia, and subsequently used those business memberships to make tax-free purchases of more than $7.2 million worth of Virginia-stamped cigarettes between 2015 and 2018. Appiah then sold and distributed more than $5.1 million worth of those cigarettes to cigarette traffickers whom he knew intended to smuggle those Virginia-stamped cigarettes out of the Commonwealth for re-sale as contraband cigarettes on the black market.
Appiah pleaded guilty to conspiracy to traffic in contraband cigarettes. He faces a maximum penalty of five years in prison when sentenced on November 6. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Kevin Elliker is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-068.
Gang Leader Sentenced to 45 years for Racketeering Conspiracy and MurderRead the Press Release
NORFOLK, Va. – A former leader of the Nine Trey Gangsters (NTG) was sentenced today to 45 years in prison for his role in a racketeering conspiracy that included the murder of 23-year-old Delante Eley.
According to court documents, Rashaun Antonio Taylor, aka “Diablo,” was a local leader of the Nine Trey Gangsters (NTG), a gang affiliated with the United Blood Nation. On March 11, 2014, after a series of incidents between Delante Eley and members of Taylor’s gang, Taylor followed Eley to his grandparents’ home, where Taylor shot and killed Eley. Two days later, Taylor and other NTG members were stopped by police while armed with a high powered Romanian-made semi-automatic rifle. Portsmouth Police detectives executed a search warrant on Taylor’s house and recovered gang paraphernalia and his cell phone. The FBI analyzed Taylor’s phone, which had been turned off for the two hours surrounding the murder, and found that nearly two hundred calls placed between the time of the murder and the traffic stop had been deleted. A confidential informant later videotaped a gang meeting led by Taylor, and several days later Taylor was overheard by the FBI and Portsmouth Police via a wire transmitter admitting to the murder.
“Taylor murdered Delante Eley in cold blood and nearly killed two others,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Taylor was the leader of approximately 40 gang members, and for years proudly proclaimed his gang affiliation. Violence was something he encouraged and personally dispatched. He bragged about this murder as his “first body,” and regularly robbed people and sold drugs as his sources of income. Threats of violence against fellow gang members, non-gang members, and even a probation officer were common for Taylor, who has spent a lifetime putting others, and this community, in fear. This significant sentence will prevent Taylor from taking another life, and will serve the purposes of general deterrence by putting others, especially those interested in gangs or currently in gangs, on notice of the consequences for taking human life and glorifying murder as a way to gain status and respect.”
On February 20, 2020, after a week-long trial, a jury convicted Taylor of racketeering conspiracy that included murder, the use of a firearm resulting in death, distribution of heroin, and being a felon in possession of a firearm.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Angela Greene, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys John F. Butler, Andrew Bosse, and Joseph E. DePadilla prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-036.
Former deputy director of Signal Network Enterprise Center at Fort Gordon sentenced to federal prisonRead the Press Release
AUGUSTA, Ga: A former official at Fort Gordon has been sentenced to federal prison for lying to investigators about his disclosure of confidential information used to award competitive bids.
Vaughn Moffett, 63, of Sharpsburg, Ga., was sentenced to 20 months in prison and fined $15,000 by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to False Statement or Representation Made to a Department or Agency of the United States, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his sentence, Moffett will serve three years of supervised release. There is no parole in the federal system.
“Vaughn Moffett used insider information to steer business toward a specific, corrupt vendor,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Moffett and the other defendants disgraced their oaths to their country, and accordingly are being held accountable for their greed.”
According to information provided in court documents and proceedings, Moffett, as deputy director of the U.S. Army Signal Network Enterprise Center (NEC) at Fort Gordon, used his access to contract bid and proposal information to assist the Communications Research, Engineering and Consultants (CREC) Group with winning a contract for upgrading the Army’s communications infrastructure at Fort Gordon in 2014. When investigators later questioned Moffett, he falsely and fraudulently denied knowing how CREC was awarded the contract.
Moffett, who retired from the Army as a major in 1996, began federal service as a civilian employee in 2005.
Other defendants in the investigation each are serving federal sentences of 60 months in prison after entering guilty pleas in the investigation of bribery, bid-rigging and Small Business Administration fraud:
- Calvin Devear Lawyer, a retired U.S. Army colonel, owned the CREC Group, which had fraudulently received Small Business Administration (SBA) status as a small, disadvantaged business;
- Anthony R. Williams, while serving as a colonel in the U.S. Army, admitted he accepted bribes to steer federal procurement contracts to the CREC Group;
- Dwayne Oswald Fulton, then an employee of a defense contractor, joined Lawyer in securing small, disadvantaged status for the CREC Group.
- Anthony Roper, a former active duty U.S. Army colonel at Fort Gordon, was a co-conspirator with Lawyer. His wife, Audra Roper, was sentenced to probation for her role in the scheme.
The cases were investigated by the United States Army Criminal Investigation Command (CID), the Defense Criminal Investigative Service (DCIS), the Small Business Administration’s (SBA) Office of Inspector General, and the United States Attorney’s Office.
“Today’s sentencing is a strong reminder that there is a price to pay for anyone who tries to defraud the government or lie to federal investigators,” said Frank Robey, director of the U.S. Army Criminal Investigation Commands Major Procurement Fraud Unit (MPFU). “It will not be tolerated, and we will work tirelessly with our legal and law enforcement partners to bring to justice anyone who violates the law.”
“Our office and its law enforcement partners will aggressively investigate false statements made in attempt to receive funds from SBA’s programs,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “It is unconscionable to fraudulently attempt to gain access to SBA funds for personal gain and profit. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Government officials who use their positions for personal gain and undermine the public trust need to be held to the highest standards of justice,” said Special Agent in Charge Cynthia A. Bruce, DCIS Southeast Field Office. “The sentencing of Vaughn Moffett sends a strong message to those who seek to undermine the Department of Defense procurement process.”
Assistant U.S. Attorney Tara Lyons prosecuted the case on behalf of the United States.
Former Old Dominion University Student Pleads Guilty to Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Vienna man pleaded guilty today to charges related to his role in a conspiracy that conducted multiple swatting events targeting journalists, a Virginia university, a historic Virginia church, and a former cabinet official.
According to court documents, John William Kirby Kelley, 19, conspired with John Cameron Denton, a former leader of the Atomwaffen Division in Texas, and others to conduct “swatting” calls. Swatting is a harassment tactic that involves deceiving dispatchers into believing that a person or persons are in imminent danger of death or bodily harm and causing the dispatchers to send police and emergency services to an unwitting third party’s address.
Kelley managed the online chatroom where conspirators chose targets and orchestrated the swatting calls. Many of the conspirators held white supremacist views and targeted individuals because they were motivated by racial animus. Kelley communicated with these white supremacists and used racial epithets.
Kelley is a former student at Old Dominion University. In early November 2018, he asked conspirators to swat Old Dominion University, which conspirators did ultimately swat on Nov. 29 and Dec. 4, 2018. In response to the bomb threat on Nov. 29, 2018, university officials issued a shelter in place order and law enforcement were forced to search and clear every building on campus.
During the course of the conspiracy, members placed at least 134 swatting calls to jurisdictions across the country. In addition to the swatting calls against Old Dominion University, conspirators conducted two additional swatting calls in the Eastern District of Virginia, including a call to a former Cabinet official living in Northern Virginia in January 2019 and the Alfred Street Baptist Church in November 2018.
Kelley pleaded guilty to conspiracy to commit an offense against the United States, interstate threats to injure. He faces a maximum penalty of five years in prison when sentenced on November 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after Senior U.S. District Judge Liam O'Grady accepted the plea. Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-154.
Former Local Militia Commander Sentenced to Eight Months’ Imprisonment for Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Militia Commander, Paul Nicholas, III, age 49, of Harrisburg, Pennsylvania, was sentenced to eight months’ imprisonment followed by three years of supervised release on July 21, 2020, for firearms offenses.
According to U.S. Attorney David. J. Freed, on February 3, 2018, Nicholas, a previously convicted felon, unlawfully possessed two AR-15 style rifles and a .45 caliber pistol in Enola, plus a Winchester .30 -.30 caliber rifle at his Harrisburg residence. At the time of his arrest, Nicholas was the commanding officer of the 41st Battalion of the Light Foot Militia in Central Pennsylvania.
Nicholas plead guilty to the charge in August 2018. Thereafter, Nicholas’ sentencing was placed on hold while an appeal in another similar unlawful firearms possession case was decided by the U.S. Court of Appeals for the Third Circuit. That appeal was resolved in January 2020.
Judge Rambo ordered Nicholas to begin serving his sentence on August 17, 2020.
The case was investigated by the Harrisburg Office of the FBI and was prosecuted by Assistant US Attorney Kim Douglas Daniel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
# # #
Former Jackson Police Officer Charged with Enticement of a Minor and Obstruction of an InvestigationRead the Press Release
Jackson, Miss. – Mark Coleman, 57, a former Jackson Police Officer, was indicted by a Federal Grand Jury on July 14, 2020, and charged with one count of enticement of a minor and one count of destroying, concealing and impeding the investigation, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Coleman will appear for arraignment before United States Magistrate Judge Keith Ball on Wednesday, July 22, 2020 at 2:30 p.m.
According to Count 1 of the indictment, Coleman is alleged to have used a cellular telephone to attempt to persuade, induce, entice or coerce a minor under the age of 18 to engage in sexual activity in violation of Mississippi’s sexual battery statute. According to Count 2 of the indictment, Coleman is alleged to have deleted text messages and images of a minor female from his cellphone and disconnected service to a cellphone he had purchased for the minor female victim, in an attempt to impede, obstruct or influence the investigation.
If convicted, Coleman faces a maximum penalty of life in prison for enticement of a minor and a maximum penalty of 10 years in prison for destroying, concealing and impeding the investigation.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Glenda Haynes.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Former Georgia attorney sentenced to two years in federal prison for theft of client fundsRead the Press Release
ATLANTA - Carla B. Gaines, an attorney formerly licensed in Georgia, has been sentenced to federal prison for stealing client money and lying about the theft.
“Gaines stole over $300,000 in client money and then repeatedly lied about it, including twice under oath,” said U.S. Attorney Byung J. “BJay” Pak. “We hope that this prison sentence brings a measure of justice to the defendant’s victims, who were abused and had their trust violated.”
“Gaines compounded her deceit by lying under oath and is another example of the FBI's commitment to holding accountable anyone who violates their sworn oath to uphold the Constitution of the United States,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Her actions not only violated her clients’ trust, but also insulted every lawyer who honors and respects the oath they took.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Carla B. Gaines was an attorney, licensed in Georgia, until she was disbarred on November 18, 2019. From August 2014 through March 2016, she stole $337,400 that she had received from Clayton County, Georgia, government, to hold in escrow for payment to a Georgia business, Kelete, Inc., which owned a gas station and convenience store in College Park, Ga. After the theft, Gaines lied to Clayton County and Kelete to lull them into believing that she still had the money and payment was on the way.
In 2014, Clayton County entered into an agreement with Kelete for Kelete to sell a right of way or easement through Kelete’s property to the County, for $712,400. Gaines was retained to serve as the escrow agent for this real estate transaction. Clayton County transferred $712,400 to Gaines for her to hold in escrow and complete the transaction.
In November 2015, Clayton County and Kelete closed the real estate deal. Gaines paid $375,000 to Kelete and its bank at the time of closing. Under the settlement agreement, Gaines was required to hold the remaining $337,400 in escrow until Kelete removed certain trade fixtures and improvements on the property. In March 2016, Kelete completed the removal and requested the remaining payment of $337,400. But Gaines never paid, despite repeated demands. Instead of holding the $337,400 in escrow as required, Gaines had diverted the funds to pay for personal and law firm expenses.
Beginning in March 2016, when payment was demanded, Gaines repeatedly made false representations to Clayton County and Kelete about whether she had the money and whether payment was on the way. For example, Gaines falsely claimed that the wire was “pending,” that the wire was “stuck,” that she had a check ready for Kelete, that she was “awaiting a call from the bank,” that “the bank was holding the wire,” that she had “straightened out the issue,” and that the “wire should be processed Monday.” These representations were false. No wires were stuck, pending, held, or on their way; and no check was ready. Gaines had far less than $337,400 in her bank accounts at the time she made these misrepresentations.
Kelete sued Gaines to recover the $337,400 it was owed. As part of that civil proceeding, Gaines lied in two depositions, in March 2017 and June 2018. Gaines testified that she had paid a portion of Kelete’s funds to another client, a pastor, in error. Gaines also testified that she had called the pastor and informed him of the mistake, and that he had promised to pay the money back to Gaines. Those representations were false.
Gaines, 61, of Mableton, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay $330,900 in restitution. She was convicted after pleading guilty to theft from a local government that receives federal funding.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Man Sentenced to Prison for Making Threats Against the American Family Association in TupeloRead the Press Release
A Florida man has been sentenced to serve time in federal prison for making threats against individuals at the American Family Association in Tupelo, Mississippi. On Monday, July 20, 2020, U.S. District Judge Sheri Polster Chappell in the Middle District of Florida sentenced 21-year old Chase Davis of Pompano Beach, Florida to 6 months incarceration for his May 22, 2019, threat to “to kill every single person” associated with the American Family Association. Judge Chappell ordered Davis to report to prison today, July 21, 2020 to begin serving his sentence. Once he has served the required term in prison, Davis will be under court supervision for three years. Davis was also ordered to pay $1,440 in restitution for costs the American Family Association incurred to protect its employees after the threat.
Davis was indicted for his criminal threats by a grand jury in the Northern District of Mississippi during the Summer of 2019. He pled guilty to those charges before a District Court in Florida pursuant to a rule that allows a defendant to plead guilty to charges in the District where they reside upon agreement by the parties and the Court. As a part of the sentence imposed on Tuesday, the Court also ordered Davis to participate in drug and mental health treatment and perform 400 hours of community service in lieu of a fine.
U.S. Attorney William C. Lamar praised the sentence and said, “It is important to protect free speech, but when it crosses the line and becomes threats to harm others on the basis of race, religious beliefs, political affiliations or other protected reasons, we will use Federal laws to hold those individuals accountable for their actions.”
Five indicted in Toledo City Council bribery and extortion schemeRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Cleveland, Ohio, has returned a 13-count indictment charging four sitting Toledo City Council members and one local attorney for their participation in a bribery and extortion scheme that encouraged soliciting and accepting cash, checks, money orders, or other things of value from local business owners in exchange for their votes on City Council.
“Today’s indictment is the next step in the process of ensuring accountability and maintaining the public’s trust in its elected officials in the city of Toledo,” said U.S. Attorney Justin Herdman. “Let this indictment serve as a reminder to all who seek to exploit their elected positions for personal enrichment – the public deserves better and we, the Department of Justice, will work day in and day out to ensure that the public’s interests are protected.”
"Elected officials are elected by the people, to serve the people, not to serve their own financial self-interest,” said FBI Special Agent in Charge Eric B. Smith. “The FBI will continue efforts to root out public corruption so citizens can have faith and trust in their public officials.”
Tyrone Riley, age 64, of Toledo, was indicted on one count of Hobbs Act conspiracy and five counts of Hobbs Act extortion under color of official right.
Yvonne Harper, age 71, of Toledo, was indicted on one count of Hobbs Act conspiracy, two counts of Hobbs Act extortion under color of official right and one count of conspiracy to commit extortion.
Garrick “Gary” Johnson, age 66, of Toledo, was indicted on one count of Hobbs Act conspiracy and two counts of Hobbs Act extortion under color of official right.
Larry Sykes, age 71, of Toledo, was indicted on one count of Hobbs Act conspiracy and two counts of Hobbs Act extortion under color of official right.
Keith Mitchell, age 69, of Toledo, was indicted on one count of Hobbs Act conspiracy and two counts of Hobbs Act extortion under color of official right.
According to the criminal complaint, in early 2018, the FBI began to investigate four Toledo City Council members and one attorney for soliciting monetary payments or other things of value from local business owners in exchange for their votes on City Council. In addition, Councilwoman Harper was investigated for an extortion attempt on a local business.
Read more on this case here: “Five charged in Toledo City Council bribery and extortion scheme”.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the Cleveland Division of the FBI and is being prosecuted by Assistant U.S. Attorney Michael Freeman.
Federal Grand Jury Indicts Austin Man for Possession of an Improvised Explosive DeviceRead the Press Release
In Austin today, the federal grand jury indicted 35-year-old Joshua Colin Honigberg for possessing an improvised explosive device, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The indictment charges Honigberg with one count of unlawful possession of a destructive device. According to court records, FBI agents and Austin Police officers executed a search warrant on May 29, 2020, at the defendant’s residence. During the search, authorities recovered an explosive bomb capable of causing property damage and personal injuries and/or death to nearby persons upon detonation.
Upon conviction, Honigberg faces up to ten years in federal prison.
The FBI, together with the Austin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), investigated this case. Assistant U.S. Attorney Grant Sparks is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fayetteville Man Sentenced to More Than 6 Years for Ammunition ChargeRead the Press Release
NEW BERN, N.C. – Chancelor Johnson, III of Fayetteville man was sentenced today to 80 months in prison for unlawfully possessing ammunition.
According to court documents, on July 13, 2018, officers with the Fayetteville Police Department responded to 6338 Paddington Court in reference to a shooting. There, they observed a man suffering from a gunshot wound. According to the victim, Johnson, broke a window to the victim’s residence, and thereafter he observed Johnson pacing in his front yard. When the victim asked him to leave, Johnson pulled out a gun and attempted to shoot him. The gun misfired. Johnson ejected the round and pulled the trigger again—this time striking the victim in the pelvic area. Johnson then fled the scene. Multiple individuals advised law enforcement that the defendant threatened to shoot and kill the victim prior to the shooting. A short time after the shooting, law enforcement apprehended Johnson and found him to be in possession of a 9mm bullet—the same caliber bullet found on the victim’s property. Johnson is a convicted felon and prohibited from possessing ammunition.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Fayetteville Police Department investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00213-FL.
###
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Erie Man Facing Charges Related to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Gregory Samuel Mancini, 31, as the sole defendant.
According to the Indictment presented to the court, from January 2015 to January 2020, Mancini received and possessed computer images depicting prepubescent minors engaging in sexually explicit conduct. In addition, Mancini travelled to Georgia from Erie, Pennsylvania for the purpose of engaging in illicit sexual conduct with another person.
The law provides for a maximum total sentence of 70 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Homeland Security Investigations conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.